Wednesday, January 18, 2017 6:23 AM EDT
No surprises from the final euro-zone inflation report for December: an annual rise of 1.1% in prices and 0.9% in core inflation. Nothing new for the ECB to chew on.
EUR/USD continues trading just under 1.07, off the highs but not too far off.
Eurostat was expected to confirm the initial inflation numbers for December. These showed headline CPI rising to an annual pace of 1.1% and also core CPI finally budging from 0.8% and reaching 0.9%. The data feeds into the rate decision of the European Central Bank tomorrow.
EUR/USD traded slightly off the highs and just under 1.07 ahead of the publication. The pair rallied on the greenback’s weakness. The disappointment from Donald Trump weighs on the USD.
The ECB is expected to leave all policy measures unchanged after making significant announcements back in December. Draghi and his colleagues extended QE through 2017 but the pace of bond buys will be reduced from April onwards.
Here is how recent moves look on the euro/dollar 30-minute chart:
(Click on image to enlarge)
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